Natalia Diatlova has told Novy Prospect about restrictions on foreigners in the agricultural sector

According to Novy Prospect online publishing, there are no agricultural producers among the foreign companies that are fully or partially winding down their business in Russia. The market players attribute this to the fact that the majority of the largest agricultural holdings are controlled by domestic entrepreneurs due to legislative restrictions.  

“Indeed, the federal law on turnover of agricultural land prohibits foreign nationals and legal entities ( in wicth more than 50% of the shares are owned by foreigners)  to purchase of agricultural land.  They have only one option – to lease. This has always been the case,” Natalia Diatlova, Partner and Head of International Desk at Maxima Legal, explained to Novy Prospect online edition.

The expert also stressed that “originally there was a practice of putting a “layer” in the form of a Russian company between agricultural assets and foreigners. Such ownership structuring is not uncommon. But there is a court practice which prohibits both direct and indirect ownership of agricultural assets and it is not known how the issue will be interpreted in the current geopolitical situation”.

To read the full article (in Russian) please visit Novy Prospect website >>>